Comments on: Selling XIN; Buying EFA http://www.canadiancapitalist.com/selling-xin-buying-efa/ Helping you invest and prosper Fri, 12 Mar 2010 22:36:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: jay http://www.canadiancapitalist.com/selling-xin-buying-efa/#comment-18966 jay Mon, 29 Jan 2007 21:57:38 +0000 http://www.canadiancapitalist.com/?p=261#comment-18966 If you're getting returns in US dollars for EFA and in Canadian for XIN, you'll need to calculate and adjust for the drop in U.S. greenback versus the loonie over this five-year period. In other words, yes, difference looks like a currency effect. As for future, I've spoken to bank economists who admit that currency predictions are not much better than guesses: nobody can really tell because speculative psychology can outweigh fundamentals for years. If you’re getting returns in US dollars for EFA and in Canadian for XIN, you’ll need to calculate and adjust for the drop in U.S. greenback versus the loonie over this five-year period. In other words, yes, difference looks like a currency effect. As for future, I’ve spoken to bank economists who admit that currency predictions are not much better than guesses: nobody can really tell because speculative psychology can outweigh fundamentals for years.

]]> By: pacifica http://www.canadiancapitalist.com/selling-xin-buying-efa/#comment-15068 pacifica Sat, 23 Dec 2006 17:53:28 +0000 http://www.canadiancapitalist.com/?p=261#comment-15068 Can anyone explain why the returns of EFA and XIN are different? As of Dec 23, 2006, EFA has a 5Y return of 15.04% and XIN only 5.83% Is this due to the currency effect of the USD going down and increasing the value of EFA? With chances that the USD still has some weight to shed, is it better to own EFA or XIN? Can anyone explain why the returns of EFA and XIN are different? As of Dec 23, 2006, EFA has a 5Y return of 15.04% and XIN only 5.83% Is this due to the currency effect of the USD going down and increasing the value of EFA? With chances that the USD still has some weight to shed, is it better to own EFA or XIN?

]]> By: Anonymous http://www.canadiancapitalist.com/selling-xin-buying-efa/#comment-226 Anonymous Wed, 30 Nov -0001 00:00:00 +0000 http://www.canadiancapitalist.com/?p=261#comment-226 "It would take a $20,000 investment in the EFA for a full year just to get back the commission involved in selling the XIN."<BR/><BR/>That doesn't sound right. Can you explain the math on that one. “It would take a $20,000 investment in the EFA for a full year just to get back the commission involved in selling the XIN.”

That doesn’t sound right. Can you explain the math on that one.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/selling-xin-buying-efa/#comment-227 Canadian Capitalist Wed, 30 Nov -0001 00:00:00 +0000 http://www.canadiancapitalist.com/?p=261#comment-227 Anon: Sure. The EFA is 15 bps cheaper than the XIN. Commission to sell is $29.95. You need almost $20,000 (29.95/.0015) to generate $29.95 in savings with the EFA. Anon: Sure. The EFA is 15 bps cheaper than the XIN. Commission to sell is $29.95. You need almost $20,000 (29.95/.0015) to generate $29.95 in savings with the EFA.

]]> By: bcoolnofear http://www.canadiancapitalist.com/selling-xin-buying-efa/#comment-228 bcoolnofear Wed, 30 Nov -0001 00:00:00 +0000 http://www.canadiancapitalist.com/?p=261#comment-228 I hope you hedge against $US because I think its value has nowhere to go but down with record debts and deficit they've been racking up the past few years. I hope you hedge against $US because I think its value has nowhere to go but down with record debts and deficit they’ve been racking up the past few years.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/selling-xin-buying-efa/#comment-229 Canadian Capitalist Wed, 30 Nov -0001 00:00:00 +0000 http://www.canadiancapitalist.com/?p=261#comment-229 bcool: Since EFA reflects the value of foreign securities (in Europe and Japan), the currency effect should be neutral as long as C$ stays stable against Euro and Yen. bcool: Since EFA reflects the value of foreign securities (in Europe and Japan), the currency effect should be neutral as long as C$ stays stable against Euro and Yen.

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